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Thanks for the reply. It's kinda hard to reason these economic systems from a personal perspective. It's probably easier to understand them when the system is s

Thanks for the reply. It's kinda hard to reason these economic systems from a personal perspective. It's probably easier to understand them when the system is supported by a group of individuals (collective view). Bitcoin is an extreme example of protecting your own money. Other people who don't buy in are losers (from Bitcoin's holders perspective). People are self-fish. Bitcoin works on this self-fish mechanism. When you first look at Bitcoin, it's a ridiculous idea. But when enough people buy into the idea, it can start to work as a Store of Value. With inflation, there's a similar mechanism. Why should you hold a currency that devalues over time? Because when enough people use it, they will accept the currency as a Medium of Exchange. For example, the USD. Everyone knows that it inflates. But nobody really cares. It's a fairly good medium of exchange. I can use it to buy stuff. Then why should you hold a crypto that inflates? Because it's decentralized. The rule is set and fair for everyone. I don't think it would completely replace fiat either. But it would be a good option to have. Bitcoin is a Store of Value because of deflationary supply. Bitflate is a Medium of Exchange because of inflationary supply. Each coin will not work by themselves. But together, they can make a monetary system. We need two coins that work in opposite directions. I call this monetary dualism.

BubRoss 6y ago
You have a lot of misconceptions going on here. First, bitcoin is not a good store of value, that was just a propaganda line that was fed to people when it was obvious the transaction throughout was being artificially constrained. Crypto currency is much too new and volatile (not just price, but ecosystem and laws) to make a claim like that. Second, there is going to be no medium of exchange as no one is going to buy into something that has inflating your money away at 7% as its selling point. That's nonsense. Also people absolutely care that the US dollar inflates, but there are deflationary forces as well, so how much isn't always clear. In any event, people use USD because they have essentially no choice, and anyone who understands inflation doesn't keep their savings as USD. People don't use the currency of their country because they chose it, they use it because they have to to survive. With crypto currency people have a choice, and no one is going to choose 7% inflation. There is no connection between inflation of a currency and how well it works as a medium of exchange. I think you are getting confused with inflation increasing the velocity of an economy, which only happens with respect to people without savings spending on essentials.
- dnprock 6y ago
  We need to go back and discuss whether Bitcoin is a viable form of money. :) That's a long discussion. There's plenty of material on the web. I do think Bitcoin is a viable form of money. It's not complete. I don't think it can replace fiat. But it's a good option for people to store their money. Short-term, Bitcoin is a Speculative Asset. Long-term, Bitcoin is a Store of Value. These two concepts are contradictory. But I think in this case, they are valid. Money is contradictory. It does not really make sense when you reason it from a single point of view. Although Bitflate has unlimited supply in the long-term, it's still limited by the 7% inflation rate in the short-term. I work out the reward schedule below: https://docs.google.com/spreadsheets/d/1tdRWdqc0I9uMASXp-zY8TnVhoiTJUd-NIEnQrAl_3Lg/edit#gid=0 https://docs.google.com/spreadsheets/d/1tdRWdqc0I9uMASXp-zY8... If we take the fiat base and inflate 7%, that is a lot. But with a new crypto, we start from 0. It'll take: - 10 years to mine 30 million coins - 28 years to mine 100 million coins - 100 years to mine 14 billion coins Many people tell me they rather use fiat with unknown inflation than a crypto with a fixed inflation rate. I think that's absurd.
  - BubRoss 6y ago
    Viable form of money is not what is being talked about. Crypto currencies can have strong properties of ideal money. My comment said store of value which isn't the same thing. > Long-term, Bitcoin is a Store of Value. Repeating an assertion doesn't make it true. People could use bitcoin as that but saying it is true is a prediction of the future which no one truly knows and history does not support. The big picture is that no one is going to put their money into a crypto currency whose 'big idea' is inflation. It makes zero sense. Sorry if I'm the first one to actually tell you this.

BubRoss 6y ago

You have a lot of misconceptions going on here. First, bitcoin is not a good store of value, that was just a propaganda line that was fed to people when it was obvious the transaction throughout was being artificially constrained. Crypto currency is much too new and volatile (not just price, but ecosystem and laws) to make a claim like that. Second, there is going to be no medium of exchange as no one is going to buy into something that has inflating your money away at 7% as its selling point. That's nonsense. Also people absolutely care that the US dollar inflates, but there are deflationary forces as well, so how much isn't always clear. In any event, people use USD because they have essentially no choice, and anyone who understands inflation doesn't keep their savings as USD. People don't use the currency of their country because they chose it, they use it because they have to to survive. With crypto currency people have a choice, and no one is going to choose 7% inflation. There is no connection between inflation of a currency and how well it works as a medium of exchange. I think you are getting confused with inflation increasing the velocity of an economy, which only happens with respect to people without savings spending on essentials.

dnprock 6y ago
We need to go back and discuss whether Bitcoin is a viable form of money. :) That's a long discussion. There's plenty of material on the web. I do think Bitcoin is a viable form of money. It's not complete. I don't think it can replace fiat. But it's a good option for people to store their money. Short-term, Bitcoin is a Speculative Asset. Long-term, Bitcoin is a Store of Value. These two concepts are contradictory. But I think in this case, they are valid. Money is contradictory. It does not really make sense when you reason it from a single point of view. Although Bitflate has unlimited supply in the long-term, it's still limited by the 7% inflation rate in the short-term. I work out the reward schedule below: https://docs.google.com/spreadsheets/d/1tdRWdqc0I9uMASXp-zY8TnVhoiTJUd-NIEnQrAl_3Lg/edit#gid=0 https://docs.google.com/spreadsheets/d/1tdRWdqc0I9uMASXp-zY8... If we take the fiat base and inflate 7%, that is a lot. But with a new crypto, we start from 0. It'll take: - 10 years to mine 30 million coins - 28 years to mine 100 million coins - 100 years to mine 14 billion coins Many people tell me they rather use fiat with unknown inflation than a crypto with a fixed inflation rate. I think that's absurd.
- BubRoss 6y ago
  Viable form of money is not what is being talked about. Crypto currencies can have strong properties of ideal money. My comment said store of value which isn't the same thing. > Long-term, Bitcoin is a Store of Value. Repeating an assertion doesn't make it true. People could use bitcoin as that but saying it is true is a prediction of the future which no one truly knows and history does not support. The big picture is that no one is going to put their money into a crypto currency whose 'big idea' is inflation. It makes zero sense. Sorry if I'm the first one to actually tell you this.